Self-Employed / Bank Statement
Can you get a mortgage if you are self-employed and write off most of your income?
Yes. A bank statement loan qualifies you on deposits into your business or personal accounts, typically over 12 or 24 months, instead of the net income on your tax returns. It is built for self-employed and 1099 borrowers whose write-offs make their tax return income look far smaller than what they actually earn.
What your bank statements prove
This is one of my favorite conversations, because the answer is so often yes when somebody has already been told no.
Your accountant did their job. They minimized your taxable income, which is what you pay them for. Then a traditional lender reads that same return, sees the net number, and treats you like you earn a fraction of what you actually bring in. That mismatch is a structuring problem, not a disqualification.
Bank statement programs look at what actually lands in your accounts. Twelve or twenty four months of deposits, an expense factor applied to reflect the cost of running your business, and that becomes your qualifying income. There are also asset-based options that qualify you on what you hold rather than what you earn, and profit-and-loss programs for certain business types.
Quick facts
- Down payment
- Typically 10% to 20%
- Credit guidelines
- Generally 640+
- Typical timeline
- Typically 30 to 45 days
- Occupancy
- Primary, second home, or investment
What it usually takes
- Usually two years self-employed in the same business, though there are exceptions
- 12 or 24 months of business or personal bank statements
- A larger down payment than a conventional loan typically wants
- A conversation about how your business is actually structured, that drives which program fits
Guidelines vary by lender, and I shop across more than 40 of them. Missing one of these is a reason to talk, not a reason to assume the answer is no.
This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.
Jennifer Ferrara
Loan Officer · NMLS #2781982
Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.
Where I Lend
Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.
Cities I specialize in:
Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX
See all service areasIs this loan right for you?
This fits if
1099 contractors, business owners, and anyone whose tax return understates what they really earn.
Look elsewhere first if
If your tax returns already reflect your full income, Conventional will get you a better rate with less paperwork.
Pros
- No tax returns required to qualify
- Qualify on what actually lands in your accounts, not net income
- 12 or 24-month statement options
Cons
- Larger down payment than a conventional W-2 loan
- Rate typically a bit higher than conventional
- Bank statements need to reasonably match the business type
Questions people actually ask
About Self-Employed / Bank Statement
Most self-employed borrowers qualify through a bank statement program, which looks at 12 or 24 months of deposits into your business or personal accounts instead of the net income on your tax returns. Asset-based and profit-and-loss programs exist too, and which one fits depends on how your business is actually structured.
Other options
Worth comparing against
Very few files have exactly one right answer. These are the ones that most often come up alongside this.
First-Time Homebuyer
Anyone buying their first home, or buying again after several years away from ownership.
Conventional
Buyers with solid credit who want the lowest long-run cost and want mortgage insurance to eventually go away.
FHA
Buyers rebuilding credit, carrying more debt than conventional allows, or working with a small down payment.
Jumbo
Buyers in the higher price bands, often self-employed professionals and move-up buyers.
Where this fits
Reviewed by Jennifer Ferrara, NMLS #2781982 · Last updated 2026-08-11
Wondering if Self-Employed / Bank Statement is right for you?
Send me the specifics and I will tell you what actually fits. If a different program serves you better, that is what I will say.